The Laffer Curve Suggests That Lower Tax Rates Will Decrease

question 116

True/False

The Laffer Curve suggests that lower tax rates will decrease saving and increase consumption.

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces.

Personal Income Tax

A tax that governments impose on individuals based on their earnings or income.

Top Marginal

Refers to the highest tax rate applied to the last dollar of taxable income in a progressive tax system.